Now Reading: Three stocks paid more than their FY26 profits in dividends
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Three stocks paid more than their FY26 profits in dividends
ICICI Prudential Asset Management, Oracle Financial Services Software and Colgate-Palmolive (India) reported dividend payout ratios above 100% in FY26, according to Livemint. The ratios were 153%, 132% and 119%, respectively. A payout…
The Story in Brief
ICICI Prudential Asset Management, Oracle Financial Services Software and Colgate-Palmolive (India) reported dividend payout ratios above 100% in FY26, according to Livemint. The ratios were 153%, 132% and 119%, respectively. A payout above 100% means a company distributed more than its reported profit, often by using accumulated cash reserves.
Livemint said the three businesses have debt-free balance sheets, strong cash generation and relatively low reinvestment needs. ICICI Prudential Asset Management recorded a three-year average return on equity of 83%, while Oracle generated nearly 100% of net income in cash. Colgate’s operating cash flow was 121% of operating profit. However, Oracle’s payout is unlikely to remain at 132% indefinitely, the report said.
The Indian Opinion
The easy story is that a payout above 100% proves shareholder friendliness. The opposite claim, that it automatically signals distress, is just as lazy. Asset-light businesses can return surplus cash, but repeated excess payouts can weaken future investment capacity. Oracle’s case shows the distinction clearly: a 90% to 100% payout may be sustainable, while 132% may not be. Investors should track operating cash flow, debt and reinvestment over the next few years, not one unusually generous dividend.
Source: livemint.com
This story was synthesised by AI from the source linked above.
